What is an auction?

1. What is an auction? Auction refers to the way of buying and selling specific goods or property rights to the highest bidder in the form of public bidding.

2. Basic principles of auction. In China's auction law, openness, fairness, justice, honesty and credibility have been recognized as the basic principles that auction activities must abide by.

3. Auction subject and its rights and obligations (1) Auctioneer: Auctioneer refers to an enterprise legal person established in accordance with the Company Law to engage in auction activities. Registered capital1100,000 yuan or more. In China, the intermediary or auction enterprise specialized in auction industry is usually called "auction house". Rights and obligations of the auctioneer: Have the right to ask the client to explain the source and defects of the auction target. An auctioneer shall explain the defects of the auction target to the bidders. -1. If the auction is completed, you can collect the auction commission and reasonable expenses from the client and the buyer, and assist the client to hand over the auction target to the buyer. -2. Unfinished auction: the auctioneer may charge the agreed fee from the client; If there is no agreement, a reasonable auction fees (that is, the service fee for unfinished business) may be charged to the client. (2) Client: refers to a citizen, legal person or other organization that entrusts an auctioneer to auction goods or property rights. As a seller, the client can be the owner of the property subject to auction or the agent of the owner of the property subject to auction. In each auction, the client is the authorized person who delivers the auction items to the auctioneer for auction. If the client hands over the auction target according to the agreement, the client shall hand over the auction target to the buyer after the auction is completed. (3) Bidders: refers to citizens, legal persons or other organizations that bid for auction targets. Where laws and regulations stipulate the conditions for buying and selling auction targets, bidders shall meet the prescribed conditions. Bidders must provide valid certificates and pay a certain amount of bid bond to participate in the bidding, and can only participate in the auction bidding after going through the bidding procedures. (4) Buyer: refers to the bidder who buys the auction target at the highest bid price. If the buyer succeeds in bidding, he must sign an auction transaction confirmation with the auctioneer and pay the price, and receive the auction target as agreed.